Many executives have Used their quarterly calls to earn to warn The fact that Trump administration tariff policy and subsequent economic uncertainty will be bad for business. But not Servicenow CEO Bill McDermot.
McDurmot says current macroeconomic shocks caused by Trump’s policy can actually provide an additional incentive for the Servicenow business.
The reason? To better control costs, companies seek to secure their technological stack, referring to only a few platforms that can be used in the organization rather than acquire multiple niche software solutions, Mcademot said Wealth On Wednesday in an interview just before the company Quarterly Post of Revenue.
“Companies have uncertainty in the world economy, and so they look at their Opex, they look at their margin profile, and they are very focused on efficiency and efficiency,” he said. “They can consolidate so much expenses and take as much cost from Servicenow and realize so quickly and get (return investment) so fast that they love it.”
However, McDermot said the Servicenow leadership yesterday gave the market about its future income reflected the uncertainty in what it affects Trump’s policy. “While our business remains strong, we only do, although some of these benefits are viewed.
The company ordered the market to expect that revenues increased by 18.5% to 19% for the whole year to $ 12.6 billion, that is, the company would essentially save the same 18.5% per year for the sales he saw in the first quarter. Until now, investors Servicenow have been tough in 2025, with concerned influence of Trump’s policy, including the reduction of public software expenses, which helps reduce the company’s stock by more than 20% of the $ 1.170.39, reached on January 28.
said McDermot Wealth It suggests that Servicenow customers will continue to implement digital transformation projects, and, in particular, will continue to invest in artificial intelligence that goes forward. “We have $ 4 trillion (the forecast of the total market size in terms of business costs) with AI with today and 2030 and Servicenow has proven that only at this quarter, where we literally entered the AI AI AI AI Enterprise Class and Services.”
CEO said Servicenow, who was originally known for processing and requests for support for companies, is increasing Seller. He said that 16 of the 20 largest Servicenow deals for the quarter were for CRM Solutions.
Both Servicenow and Salesforce make a great push on the sale of AI “agents” that automate workflows for customers. Servicenow announced plans acquire Moveworks A company that has developed AI agents to help solve it and human resources and issues for $ 2.85 billion to help strengthen their AI agent offers. It also purchased logik.ai, a company that uses AI to help sellers quote for complex food offers to add their CRM capabilities.
McDurmot says the ability of Servicenow to offer a single platform through all the functional areas of the client, rather than offering Sewed products for sales, human resources, IT and operations, it has meant that companies could easier to implement AI agents from servicenow than with their competitor. “Talk to a big company, choose any one, they will tell you that they have 50 to 100 copies of Salesforce. How are you going to apply for agents up to 50 copies that are not built? Good luck. So they want a clean platform with a clean game for ordering and servicing one in common architecture, and we do it and we do it.”
In a separate interview, Business Insider, Mcademot said that the company has not yet affected the reduction of state contracts provided by the State Efficiency Department (DOGE), which focuses on software licenses as an area to reduce federal costs.
So far, the Servicenow business impetus looks strong. In the first quarter, the company announced the income for the rally, headed by consensus -5% analytics and headed market expectations for both sales and profits. In the three months ended on March 31, the company received $ 460 million in net income of $ 3.09 billion, using the standard GAAP accounting. The company also said that it has already been booked, which has more than $ 22 billion, and $ 508 with more than $ 5 million annual contract value, an increase of more than 20% a year. Servicenow shares increased by 11% after an hour traded on Wednesday evening after the announcement.
Originally this story was presented on Fortune.com
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2025-04-24 12:27:00
Jeremy Kahn
